Treasury Action: the market is treading water at slightly higher yields
Treasury Action: the market is treading water at slightly higher yields, while Wall Street rebounds with the Dow recovering after four days of declines. Some stability in Turkey has limited further safe have flows into bonds and underpinned equities too, and it's turned into a wait-and-see trade today. The data calendar is hefty tomorrow, and includes several key reports, including July retail sales, industrial production, preliminary Q2 productivity, the August Empire State manufacturing index, and June Treasury capital flows. All will provide interesting looks at various sectors of the economy, especially as trade frictions intensified into the summer, though no grand take-aways are likely. The TIC report will provide an update global demand for Treasuries and other U.S. assets, but it will be difficult to ferret out any strong conclusions amid normal monthly gyrations. The talk after the May TIC report was where did Russia go, as it dropped out of the list of foreign holders of Treasuries. Analysts suspect they moved their holdings into another account, such as Caymen Islands, or another account, rather than having liquidated them. Note too that the Fed's custody account showed a $26 B build in holdings of Treasury securities over the first two weeks of August.